15 Other Valuation Approaches The Brand Value Equation Method (BVE) composed of multiple intangibles. The competitive Advantage Technique complex patent portfolio, share of market, competitive pricing and other benchmarks. The concept of relative Incremental Value sub-brand. Decremental Cost Savings Valuation Net present value of future savings. Enterprise Value Enhancement difference between the total business enterprise value and the business enterprise value as calculated without IP. Imputed Income Analysis Domain name and sub-brand. Income Capitalization or Direct Capitalization Method: that has no predetermined statutory expiration (trademark) and for which net income is not expected to vary greatly over time (contractually) pharmaceutical industry. Income Differential Analysis: product with strong trademark or unique technology will receive more income than a competitor. Liquidation Value: bankruptcy situations, lowest price. Monte Carlo Analysis: valuing early-stage, non-commercialized tech. With many unknowns and numerous scenarios. Options Pricing Technique (Black-Scholes Model): Financial option on a stock, the right to buy a stock for a predetermined price before the option expires. Premium Pricing Analysis: compared to the average product in market. Profit-Split Methodology: single value for all of intangible assets. Rules of thumb: 25 percent of rule of thumb that allocates one-quarter of a company s profit as imputed royalty for its intangible assets 5 percent of sales rule of thumb 15

17 15 Georgia-Pacific factors It is also worth mentioning the well-known 15 Georgia-Pacific factors to be considered when determining the royalty rate. The short version of the 15 factors is listed below. 1. The royalties received by patent owner for licensing the patent, proving or tending to prove an established royalty. 2. The rates paid by the licensee for the use of other similar patents. 3. The nature and scope of the license, such as whether it is exclusive or nonexclusive, restricted or unrestricted in terms of territory or customers. 4. Patent owner s policy of maintaining its patent monopoly by licensing the use of the invention only under special conditions designed to preserve the monopoly. 5. The commercial relationship between patent owner and licensees, such as whether they are competitors in the same territory in the same line of business or whether they are inventors and promoters. 6. The effect of selling the patented specialty in promoting sales of other products of the patent owner; the existing value of the invention to patent owner as a generator of sales of nonpatented items; and the extent of such derivative or convoyed sales. 7. The duration of the patent and the term of the license. 8. The established profitability of the patented product, its commercial success and its current popularity. 9. The utility and advantages of the patent property over any old modes or devices that had been used. 10. The nature of the patented invention, its character in the commercial embodiment owned and produced by the licensor and the benefits to those who used it. 11. The extent to which the infringer used the invention and any evidence probative of the value of that use. 12. The portion of the profit or selling price that is customary in the particular business or in comparable businesses. 13. The portion of the realizable profit that should be credited to the invention as distinguished from any nonpatented elements, manufacturing process, business risks, significant features or improvements added by the infringer. 14. The opinion testimony of qualified experts. 15. The amount that patent owner and a licensee would have agreed upon at the time the infringement began if they had reasonably and voluntarily tried to reach an agreement. 17

21 Which is Better? A piezoelectric component is licensed and sold to customers for $150. It costs the company $140 to make and distribute the devices. A) 10% Royalty on True Net Sales B) 1% Royalty on Gross Sales 21

23 Licensed Patents Currently pending and issued US and foreign patents associated with the following technologies: List technology identifiers & available patent filings / Inventors Scope of License Upfront or other scheduled licensee fees Royalty Rate (Applies to Sales by Licensee, Affiliates, and Sublicensees) Sublicense Consideration Sharing Minimum Royalty Diligence Milestones Assignment Fee Patent Expenses License Agreement Exclusivity: Exclusive or non-exclusive? Territory: Worldwide or limited geography? Fields of Use: All fields or limited fields? If limited, also document excluded fields. $ due on execution date, $ due on. % Based on net income ($$) or units? Stacking (ie: multiple patents required)? Buy-out rights? Tiered (ie: decreasing rates over time)? % of non-royalty sublicense consideration. $ for the contract year ending ; $ for the contract year ending ; $ per contract year thereafter. (First year of minimum royalties should start NO sooner than the first year after expected first sale of product) Licensee will use diligent efforts to commercialize the licensed technology, including accomplishment of the milestones below. If Licensee fails to meet the milestones or to actively commercialize the licensed technology, it shall be given a reasonable cure period before the license terminates. Milestone Deadline Fee ie: Sign or Fund Sponsor Research ie: Produce Commercial Prototype ie: First Sale of Licensed Product ie: First Sublicense Executed Lesser of % received for the Assignment or $. Licensee responsible for all past patent expenses and all future patent expenses. Licensee will reimburse Licensor for past patent expenses on execution date. Based on University s standard form. 23

23. BALANCES AND TRANSACTIONS WITH RELATED PARTIES a) The detail of receivables from related parties is as follows: Trade Receivables 363.535 556.353 363.535 556.353 The detail of trade and non-trade receivables

EFET European Federation of Energy Traders Annex 2a to the General Agreement Confirmation of Individual Contract (Fixed Price) between as Seller and as Buyer. concluded on: / /,. hours Delivery Schedule

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EFET European Federation of Energy Traders Annex 2a to the General Agreement Confirmation of Individual Contract (Fixed Price) between as Seller and _ as Buyer concluded on / /,. hours Delivery Schedule:

0100634713 Non-customer created content SharedBook and its licensors. All rights reserved by their respective parties. Patents pending for the SharedBook technology. NOT FOR RESALE. For personal, noncommercial

WEEK 11 CME323 NUMERIC ANALYSIS Lect. Yasin ORTAKCI yasinortakci@karabuk.edu.tr 2 INTERPOLATION Introduction A census of the population of the United States is taken every 10 years. The following table

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